Risk versus reward

Three people discussing risk

I’m worried about the risks I’ll have to take to exploit my business’s growth opportunities. How do I find a balance?

Plan for the opportunities in a way that enables you to mitigate the risks.

How do I do that?

Identify all the possible risks your business faces as it grows. If you need help identifying these risks, take advice – from your bank’s small business team, for example, or your accountant.

Won’t I scare myself off?

Not if you act strategically. Having identified the risks that concern you most, take steps to counter them. If, say, you’re worried about hiring a new member of staff in case demand eases, hire someone on a short-term contract to start with.

And if I think a risk is too large?

Don’t take it. But don’t forget there is a risk in not going for growth too.

Is it worth it?

Entrepreneurs are risk-takers by nature – you wouldn’t have started your business otherwise. If you think the rewards on offer are worth going for, and you have a plan for managing the risks of doing so, hold your nerve.

 

Quick ones

GROW! GROW! GROW!

3 small businesses and their story of how they have made the big time.

Experts say

David Prosser
Grow Your Business

With top tips from leading business brain David Prosser.